- Gensler said client assets held on exchanges are part of the assets of potential bankrupts.
- He stated that crypto exchanges that store client funds are not qualified.
Speaking to the Investor Advisory Committee, SEC Chairman Gary Gensler declaredthat the existing storage rules do not provide adequate protection for users’ crypto assets.
According to him, the rules should ensure the safety of client assets with the help of qualified custodians. But the crypto exchanges that now fulfill this role, in his opinion, are not qualified.
“If a cryptocurrency trading platform claims to be a qualified custodian, it does not mean that it is one,” Gensler said.
The chairman of the SEC recalled the recent bankruptcies in the cryptocurrency sector. According to him, the assets of clients, which are stored on exchanges, are part of the property of potential bankrupts.
“We need to expand the guardianship rule to cover all of an investor’s assets, not just funds or securities. Congress gave the SEC more powers in response to the financial crisis. The new rules will help ensure that platforms do not use, misuse or lose investors’ assets,” Gary said in his speech.
He recommended important improvements to the security rules by ensuring that only qualified custodians are allowed to hold users’ crypto assets.
The views expressed by Gensler are solely his opinion, do not reflect the policy of the SEC, and may not coincide with the opinion of agency employees.
